Trump's decision shook global trade balances and created a new wave of uncertainty in financial markets.
In two separate letters posted on the social media platform Truth Social on Saturday, Trump addressed the EU and Mexico, announcing that the new tariffs would come into effect if no agreement could be reached on better trade conditions. Trump, who has been making changes to the tariff rates he proposed since April, invited the parties to further negotiations.
In his letter, Trump said, “If you want to open your closed trade market to the US and remove all tariff and non-tariff policies and trade barriers, we may consider making an adjustment in this letter.”
While the European Union had hoped to reach a temporary agreement with the US to prevent the new tariffs, Trump's statements dealt a heavy blow to these expectations. The letters have dampened optimism about reaching a short-term trade agreement between the two major economies, and experts note that the decision could increase tensions in transatlantic relations.
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